Everything You Know About Money is Wrong: Insights from Real Estate Attorney Mauricio Rauld

The Big Picture on Insights from Real Estate Attorney Mauricio Rauld:

• • Prioritizing investment over excessive spending can accelerate wealth building, as seen in Jim Rohn’s 90% investment strategy and Grant Cardone’s 50/50 rule.

  • Active investments, such as real estate ventures, offer more control and potential benefits compared to passive investments like 401(k)s, which come with restricted access and hidden fees.

  • Investing in assets like rental properties instead of traditional college savings plans can provide long-term financial advantages, including equity growth, tax benefits, and appreciation.

In a recent eye-opening conversation with Mauricio Rauld, a distinguished real estate syndication attorney and partner at Premier Law Group, we delved into counterintuitive financial strategies that challenge conventional wisdom. Mauricio, author of “Legal Strategies for Everyone,” shared insights that could revolutionize how we think about wealth building.

The Jim Rohn Model

The discussion began with a paradigm-shifting concept from Jim Rohn, a legendary business philosopher. While most financial advisors recommend saving 10% of your income, Rohn proposed a more ambitious 70/10/10/10 model – spending 70% of income while allocating 10% each to active investments, passive investments, and charity. But here’s where it gets interesting: Rohn himself admitted he couldn’t spend 70% of his income, calling such spending “obscene.” Instead, he lived on merely 10% of his earnings, investing the remaining 90%.

 This radical approach to money management stands in stark contrast to the common practice of lifestyle inflation, where spending increases in lockstep with income. Grant Cardone echoes this philosophy with his 50/50 rule – living on half your income while investing the other half. The key isn’t focusing on specific dollar amounts but rather on maintaining spending percentages as income grows.

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Active vs Passive Investments

When discussing investment strategies, Mauricio highlighted the distinction between active and passive investments.

Active investments include hands-on real estate ventures like managing rental properties or starting a business, while passive investments encompass stocks, bonds, and silent real estate partnerships. He particularly emphasized the advantages of real estate investing over traditional retirement vehicles like 401(k)s, citing two main drawbacks of the latter: restricted access until retirement age and hidden fees that significantly erode returns.

Perhaps one of the most innovative suggestions offered was an alternative to 529 college savings plans. Instead of contributing monthly to a college fund, Mauricio recommends investing in a single-family rental property. Over 18 years, the equity built in the property could potentially cover college expenses while providing additional benefits like tax advantages and appreciation.

The conversation underscored a crucial point: successful wealth building often requires challenging conventional financial wisdom and adopting strategies that might seem counterintuitive at first glance. While these approaches may demand more education and effort than traditional investment vehicles, they potentially offer greater returns and more control over one’s financial future.

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Final Thoughts

Whether you’re just starting your financial journey or looking to optimize your existing strategy, these insights from Mauricio Rauld provide valuable food for thought. The path to financial success might not lie in following traditional advice but in daring to think differently about money, spending, and investment strategies.

For those interested in learning more about these strategies or seeking professional guidance, Mauricio can be reached through his website at askmauricio.com or followed on Instagram @MauricioRauld, where he regularly shares valuable content on real estate investment and asset protection.